The Single Email I wrote That Generated 1.2mln+ in Cash
#84 Angelinvesting.it - From idea to Series A - Weekly Newsletter
Dear reader,
Imagine your key differentiator also being a positive cash generator. Sounds too good to be true? That's exactly what we achieved at iStarter, the accelerator I managed from 2015 to 2020. Our secret weapon? Our equity partners - exceptional managers and entrepreneurs who became the heart of our accelerator. And it all started with a single, carefully crafted email.
This email was our gateway to building a network of 100 equity partners, ultimately generating over €1.2 million in revenue and capital. It wasn't just about attracting investors; it was about finding active participants who would drive our mentorship and networking efforts. Here's how it worked:
We sent a template email to carefully selected prospects. This email was comprehensive, covering:
Why to invest in iStarter
Why not to invest (yes, we were upfront about potential drawbacks)
What we expected from our equity partners
Our results so far
Our major challenges
It initiated a rigorous selection process, including 3 rounds of interviews.
Successful candidates invested 20k (10k joining fee + 10k equity buy-in).
The result? A powerhouse of talent that set iStarter apart in a crowded market. We secured 100 Equity partners in 5 years, top-tier execs and entrepreneurs, creating a network of influencers actively involved in mentoring startups. Soon, we gained a reputation as the accelerator where startups meet real industry leaders.
The Arrow Framework: A 3-Element Strategy for Success
Our approach to attracting these exceptional individuals, which I call the "Arrow Framework," consisted of three key elements:
The Arrowhead - Our "Why": We appealed to noble desires beyond financial gain. Our mission of giving back to Italy by shaping its entrepreneurial future resonated deeply with accomplished individuals seeking purpose.
The Lower Side - Hidden Benefits: We offered unexpected advantages like access to a curated community of peers, exposure to cutting-edge startups, and opportunities to shape the next generation of entrepreneurs. These benefits provided value far beyond the financial investment.
The Shaft - Social Validation: Our rigorous selection process, the credibility of existing partners, and high-caliber events created an aura of prestige around iStarter. As our reputation grew, so did the desire to be associated with us.
These elements created a self-reinforcing cycle: Our compelling "Why" attracted purpose-driven leaders, the benefits kept them engaged, and their involvement amplified our social proof, attracting even more exceptional partners.
In the end, I was more than the architect of this framework. I was its first convert, fully buying into our own pitch of purpose, benefits, and social validation.
A well-crafted value proposition, speaking to both heart and mind, can be an irresistible force - even for the most discerning and successful individuals. And when these individuals become an integral part of your offering, you create something truly unique.
Have a great weekend,
Simone
P.S. While our framework was remarkably effective at attracting exceptional partners, the iStarter project itself faced significant challenges and it definitely did not live up to its potential. I missed key targets and made my share of mistakes. The journey from a compelling pitch to a successful venture is complex and often unpredictable. But that's a story for another newsletter - stay tuned for "Lessons Learned: Navigating the Gap Between Vision and Execution in the Startup World".